The AP-1 transcriptional activating complex, made up of Jun and Fos pr
oteins, is involved in controlling many cellular processes such as cel
l proliferation, differentiation and transformation. We have previousl
y characterized a dominant-negative mutant of c-Jun called TAM-67 whic
h forms dimers with c-Jun and c-Fos, and binds DNA as a homodimer or h
eterodimer with c-Jun or c-Fos. This dominant-negative mutant is a pot
ent inhibitor of AP-1 mediated transactivation, as well as c-jun/ras a
nd TPA/ras-induced transformation. The present report describes experi
ments designed to elucidate the exact molecular mechanism of this domi
nant-negative inhibitor. The DNA binding kinetics of both TAM-67:TAM-6
7 homodimers as well as TAM-67:Fos heterodimers were studied and compa
red to those of c-Jun and other transactivation-deficient mutants of c
-Jun. These studies demonstrated that the TAM-67 proteins have similar
DNA binding kinetics to c-Jun and other Jun mutant proteins. Thus, th
e deletion of the amino-terminal end of the Jun protein does not signi
ficantly alter the protein's affinity for DNA. In addition, to determi
ne whether TAM-67 functions through the formation of homodimers, or th
rough interactions with endogenous c-Jun or c-Fos, we constructed a pa
ir of chimeric proteins made by replacing the leucine zipper of TAM-67
with the leucine zippers of GCN4 and c-Fos. These chimeric proteins,
termed TAM/GCN4 and TAM/Fos, were then tested for their ability to bin
d DNA, inhibit c-Jun-induced transactivation, and inhibit TPA/ras-medi
ated transformation. The results of these studies show that while both
chimeric proteins bind equally well to DNA, only the TAM/Fos protein,
and not the TAM/GCN4 protein, inhibits AP-1-induced transactivation a
nd TPA/ras-induced transformation. When compared to the TAM-67 protein
, the TAM/Fos protein is an equally potent inhibitor of transactivatio
n and transformation. These results suggest that TAM-67 inhibits AP-1-
mediated processes through a 'quenching' mechanism by inhibiting the f
unction of endogenous Jun and/or Fos proteins. The implications of the
se mechanistic findings on the development of potent inhibitors of sig
nal transduction pathways are discussed.